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Boom in 'blank check' companies is wearing out insurers


Boom in blank check companies is wearing out insurers
Katherine Chiglinsky and Jenny Surane, Bloomberg
Feb. 12, 2021
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Tilman Fertitta, the Houston billionaire who built a hospitality and entertainment empire from a single seafood restaurant in Katy, will take his Landry’s Inc. and Golden Nugget casino operations public by merging them with a special purpose acquisition company. The transaction values the businesses at $6.6 billion, including debt.Jon Shapley, Houston Chronicle / Staff photographer
The boom in “blank check” companies is overwhelming a key player in their creation companies: insurers.
Firms selling directors-and-officers liability policies for these special purpose acquisition companies have been flooded by the listings that surged last year. That’s caused insurers to ratchet up their prices and seek ways to control their exposure to SPACs moves that are making it harder for blank-check firms to get started. ....

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Insurers Overwhelmed by Demand for D&O Coverage for Blank Check Companies


Insurers Overwhelmed by Demand for D&O Coverage for Blank Check Companies
By Katherine Chiglinsky and Jenny Surane | February 10, 2021
The SPAC boom is overwhelming a key player in the creation of a blank-check companies: insurers.
Firms selling directors-and-officers liability policies for special purpose acquisition companies have been flooded by the listings that surged last year. That’s caused insurers to ratchet up their prices and seek ways to control their exposure to SPACs moves that are making it harder for blank-check firms to get started.
“There was clearly some SPAC exhaustion in the market,” Kristin Kraeger, national directors-and-officers practice leader at insurance broker Aon Plc, said in an interview. “The carriers that were writing these deals mid-year and through the fall started to reflect on their book” and didn’t want to get too heavily weighted in that area. ....

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